What insurance company is best for a long term rental property?

[Oscar Morales]

I currently have Allstate Insurance for my rental property but i was told that i should change insurance companies because they do not cover non-owner-occupied properties. What Insurance company is best and what do ya'll suggest.

[John Mocker]

Oscar,

I posted this a couple of days ago.  I think it applies to your situation now & in the future:

"I was just discussing this at a Real Estate Meetup. When you are a real estate investor, you face different Insurance requirements depending on the project:

1. Flip: Renovation Builders Risk, General Liability, Workers Comp., ... are possible needs

2. Renovate & Hold: The above plus Vacant Building coverage, Dwelling/Fire coverage, Umbrella,..

3. Buy & Hold: Depends on the size of the property (# of units) and what the use (Apartments, Retail, office, etc.)

Be aware that it is unlikely that the best coverage for all the situations would be with the same Insurance company. You will most likely have several Insurance Companies for different properties or projects.

Because of the above, I would suggest you work with an Independent Agent (represents multiple Insurance companies). They should be able to write (and be knowledgeable in) both Personal & Commercial coverages. Look for recommendations of other investors, check online, and be sure to interview the prospective agents to judge their knowledge and experience in the Investment area."

One big caution, you need to let Allstate know the building is fully tenant occupied.  If they have it as an owner occupied property it could be a problem for a claim.  

[William Anderson]

Most large insurers will offer a landlord policy which includes higher liability coverage and usually loss of income.  The cost is higher but it’s a must for income property protection.  Better find an insurance broker who offers choices

[Cameron Moore]

I agree fully with @John Mocker. It is important to work with an Insurance broker aka Independent agent that is not partial to any one company and understands which exact situation you are in. 

[Eliott Elias]

Use a insurance broker that will give you every option. 

[Michael S.]

State Farm - my umbrella policy makes me sleep much easier at night.

We used a broker for the initial policy and the insurance company he set us up with was miserable to work with, and would not issue us an umbrella policy for an unclear reason  - have been much happier with state farm.